Bond funds can improve returns and reduce risks in the portfolio.

Bond funds mainly invest in bonds, so they are attractive to investors seeking stable income. Bond funds are usually less volatile than equity funds, so they are often considered as investment tools with moderate returns and risks by investors. In addition, when bond funds and stock funds make appropriate portfolio investment, investment risks can often be well dispersed.

Compared with other types of funds, equity funds have higher risks, but also higher expected returns; The purpose of hybrid fund design is to enable investors to diversify their investments by choosing a fund type, without buying stock funds, bond funds and money market funds with different styles.

Hybrid funds use both aggressive and conservative investment strategies, and their returns and risks are lower than those of stock funds, but higher than those of bonds and money market funds, so they are a wealth management product with moderate risks. Open-end fund refers to a fund operation mode in which fund sponsors can sell fund units or shares to investors at any time according to investors' needs, and can redeem the fund units or shares issued at the request of investors when they set up a fund.